Entravision Expects 15% Drop in Earnings

Spanish-language media company Entravision Communications Corp. warned of first-quarter financial shortfalls Monday as it continues to suffer from weak advertising sales.

The Santa Monica-based company said it expects first-quarter revenue to be about $43 million, which would equal last year’s first-quarter sales figure, but said cash flow would fall about 15% from last year to about $7 million.

For all of 2001, Entravision said, it expects revenue of $219 million to $225 million, which would be up 2% to 5% from 2000, and it sees cash flow for the full year of $63 million to $67 million for a growth rate of 8% to 15%.

“Our revised guidance reflects the impact of continued weakness in advertising expenditures across our markets concurrent with the slowdown in the economy,” Chairman Walter Ulloa said. But he said the company is “cautiously optimistic” about a rebound in ad spending in the second half of 2001.

Entravision shares ended Monday off 10 cents, or 1.22%, at $8.10 on the New York Stock Exchange. The announcement came after the market had closed.